Home / Money / Personal Finance /  Majority Indians falling behind when it comes to retirement planning, says study

NEW DELHI : Majority of Indians are falling behind when it comes to retirement planning, shows India Retirement Index Study (IRIS) conducted by Max Life Insurance Company Ltd in partnership with KANTAR. India’s retirement index stood at 44 on a scale of 0 to 100, indicating that Indians are lagging behind in retirement planning. 

Health and financial preparedness stood at 41 and 49, respectively, while emotional preparedness dipped from 62 to 59, indicating increasing dependency on family, friends, and social support during retirement, the report said.

“As India’s life expectancy increases and health trends change, the country’s elderly population is projected to grow nearly 41% to 194 million by 2031. There is also a review underway of the retirement age in India to align it with the increasing life expectancy. As industry and the wider ecosystem take steps in a positive direction, the robust and well-represented study reveals that Indians are also realising the need to plan for retirement early. However, the awareness is yet to translate into action in terms of proactively saving and investing," said said Prashant Tripathy, Managing Director and CEO, Max Life Insurance.

“When it comes to retirement planning, all Indians must embrace ‘earlier the better’ philosophy and start planning at a young age, to ensure their retirement years provide them an opportunity to live a healthy and financially independent life. As we unveil the findings of IRIS 2.0, we urge India to realise the importance of timely retirement planning and encourage them to work towards securing their future."

IRIS 2.0 reveals urban Indians maintain an overall positive outlook on retirement. 70% associate it with positive thoughts such as ‘more time to take care of family’, ‘tension free life’ and ‘greater prospects of luxury/travel’. In contrast, 30% or 3 in 10 associate retirement with negative sentiments, of which 6% cite that they ‘might not be very fit and healthy’, 5% fear ‘not having enough financial savings’.

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